Bioniche announces fiscal 2009 year-end results

Sep 19 2009

Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for its 2009 fiscal year ended June 30, 2009.

"We had a very successful year in terms of revenues generated by our base Animal Health business, experiencing 21% growth in a challenging global economy," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "In addition, subsequent to the end of the fiscal year, we announced a transformative corporate event: The signing of a licensing agreement with Endo Pharmaceuticals Inc. for exclusive rights to develop and market UrocidinTM in the U.S. with an option for global rights."

Urocidin is a patented formulation of Mycobacterial Cell Wall-DNA Complex (MCC) developed by Bioniche for the treatment of non-muscle-invasive bladder cancer that is currently undergoing Phase III clinical testing.

Subsequent to the year-end, the Company received an up-front payment of US$20 million from Endo and executed a series of transactions improving its capital structure. At present, the Company reports that its unaudited cash position, inclusive of restricted cash, at the end of August, 2009, was $16.6 million. This strong cash position is the net result of the closing of the License, Development and Supply Agreement as explained above, the repayment of the revolving credit facility and associated fees of $6.2M (US$5.3M), the sale of U.S. licensing rights to a product in the animal health market subsequent to June 30, 2009 for $0.9M (US$0.8M), fourth quarter working capital variations, and repayment of overdue outstanding payables. More information on the partnership transaction and other subsequent events is provided in the Company's Fiscal 2009 Management's Discussion and Analysis dated September 17, 2009.